The Eden Township Healthcare District board of directors has tabled a decision on providing $20 million to keep San Leandro (Calif.) Hospital open during its transition to a new owner, according to a report by the Mercury News.
Sacramento, Calif.-based Sutter Health, which currently owns San Leandro Hospital, entered into a letter of intent this month to sell the 93-bed hospital to Oakland, Calif.-based county-owned public network Alameda Health System. Sutter agreed to pay $22 million toward operating expenses, and Alex Briscoe, agency director of Alameda County Health Care Services, asked the hospital district for an additional $20 million in funds during the transition period. Without approval of the added public funds by July 1, Mr. Briscoe said he expects Sutter to announce it will close the hospital, according to the report.
To find the funding, Briscoe suggested the district either sell half its assets, appropriate property tax revenue or borrow against its three medical office buildings, with a preference toward borrowing in order to avoid a public vote and guarantee enough funding, according to the report.
The hospital district also funds St. Rose Hospital in Hayward, Calif., which is also operating at a deficit and requesting additional funding. Under the letter of intent with Alameda Health System, Sutter would absorb all damages for San Leandro as long as the district pays to keep the hospital open.
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Sacramento, Calif.-based Sutter Health, which currently owns San Leandro Hospital, entered into a letter of intent this month to sell the 93-bed hospital to Oakland, Calif.-based county-owned public network Alameda Health System. Sutter agreed to pay $22 million toward operating expenses, and Alex Briscoe, agency director of Alameda County Health Care Services, asked the hospital district for an additional $20 million in funds during the transition period. Without approval of the added public funds by July 1, Mr. Briscoe said he expects Sutter to announce it will close the hospital, according to the report.
To find the funding, Briscoe suggested the district either sell half its assets, appropriate property tax revenue or borrow against its three medical office buildings, with a preference toward borrowing in order to avoid a public vote and guarantee enough funding, according to the report.
The hospital district also funds St. Rose Hospital in Hayward, Calif., which is also operating at a deficit and requesting additional funding. Under the letter of intent with Alameda Health System, Sutter would absorb all damages for San Leandro as long as the district pays to keep the hospital open.
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